What is NFT20?
NFT20 is a permissionless p2p protocol to tokenize NFTs and make them tradable on decentralized exchanges such as UniSwap or Sushiswap.
Anyone with an NFT can create a new pool or add his NFT to an existing pool and get ERC20 Token derivatives of their NFTs in a permission-less way, those tokens can be transferred and traded on DEXes right away. You can also swap your NFT for any other NFT of the same pool, no need to tokenize.
NFT20 also allows you to own a fractional share of an NFT in the collection. For example, if you own 50 SRSC20 then it means that you own 50% of a Floor SEWER RAT SOCIAL CLUB (the cheapest SEWER RAT SOCIAL CLUB).
What is an NFT20 Pool and what can you do with them?
The NFT20 Pool contains SEWER RAT SOCIAL CLUB that other users have deposited and you can perform different actions on it using SRSC20 . SRSC20 is an ERC20 token created specifically for the SEWER RAT SOCIAL CLUB NFT20 Pool and it can be traded on Uniswap.
Use cases for the NFT20 pool and SRSC20 :
- You can deposit a SEWER RAT SOCIAL CLUB into the pool for 95 SRSC20 tokens.
- You can use 100 SRSC20 tokens to swap out any SEWER RAT SOCIAL CLUB in the pool.
- You can swap a SEWER RAT SOCIAL CLUB with any other SEWER RAT SOCIAL CLUB in the pool.
- You can buy directly using ETH from the pool.
- You can exchange your ETH for SRSC20 on Uniswap.
- You can exchange your SRSC20 tokens for ETH on Uniswap when there is enough liquidity.
- You can provide Liquidity for SRSC20-ETH Pair .
Note: All SEWER RAT SOCIAL CLUB are treated equally in the pool so you should only deposit SEWER RAT SOCIAL CLUB that you think are common (i.e Floor SEWER RAT SOCIAL CLUB )
We will go over each of the above use cases in more detail below.
1. Swapping a SEWER RAT SOCIAL CLUB with another SEWER RAT SOCIAL CLUB in the pool
- Select the “Swap NFT to NFT” toggle above.
- In “FROM”, select a SEWER RAT SOCIAL CLUB from your wallet
- In “TO”, select that cute SEWER RAT SOCIAL CLUB from the pool that you like better
Note: Unlike using SRSC20, you can swap a SEWER RAT SOCIAL CLUB in your wallet for another SEWER RAT SOCIAL CLUB in the pool without the 5% fee and only pay a gas fee.
2. Depositing a SEWER RAT SOCIAL CLUB into the pool
You can deposit a SEWER RAT SOCIAL CLUB into the pool and in return, you will get 95 SRSC20 tokens. The remaining 5 act as a 5% fee and get distributed to $MUSE token holders.
3. Buying a SEWER RAT SOCIAL CLUB from the pool using 100 SRSC20
If you click on the arrows between the “FROM” and “TO” fields, it will let you change the direction of the swap (just like Uniswap). Now you can swap 100 SRSC20 for a SEWER RAT SOCIAL CLUB!
4. Buying a SEWER RAT SOCIAL CLUB directly from the pool
There’s also a new feature where you can also directly buy a SEWER RAT SOCIAL CLUB from the pool using ETH without dealing with SRSC20 . The NFT20 platform will do all the Uniswap operations for you in 1 transaction. There’s a 5% fee to it but it might be more cost-efficient since you can save on gas fees.
5. Exchanging ETH for SRSC20 on Uniswap
Since SRSC20 is an ERC20 token, you can directly get it from Uniswap. You can also directly click on this link to access the SRSC20 Uniswap exchange page.
6. Exchanging SRSC20 to ETH
Similarly, you can exchange SRSC20 for ETH on Uniswap. The great part about this is that you do not need to look for a buyer (compared to OpenSea). Here’s the Uniswap link.
There will need to be enough liquidity in SRSC20 in order to perform this operation.
7. Provide Liquidity for SRSC20-ETH Pair
You can provide Liquidity to the SRSC20/ETH pair .
- Add liquidity to the Uniswap SRSC20/ETH pair.You will need to provide SRSC20 and ETH in order to do it.
How does the Floor Price and the token price ofSRSC20change?
The Floor Price of SEWER RAT SOCIAL CLUB on NFT20 and the token price of SRSC20 fluctuates with the buy and sell transactions.
If more people buy SRSC20 tokens, then the SRSC20 token price and the Floor Price (100 SRSC20 ) of a SEWER RAT SOCIAL CLUB on the NFT20 pool go up. If more people liquidate their SRSC20 tokens for ETH, the price goes down.